Accurately Calculate Market Value (m = c - d + r)

[alebrewer]

You must be right. You're GH after all.

 

[George Hatch]

Do you think I've got my facts incorrect? Because if so, that isn't my intention.

They're not very common any more, but long form CAs used to be common in narrative appraisal reports.

 

[alebrewer]

Honestly - I didn't take the time to read the book. Other than the first sentence, though, I fail to see where you were able to tie the CA to a beauty pageant? As to whether buyers 'depreciate' site improvements, it is my opinion that they do not. For example: If I'm buying a home that has a 30 year old HVAC system, and IF you were able to guarantee me that system would perform for another 30 years, I could care less how much depreciation I could attribute to the system. That's the reason folks purchase home warranties when they buy a property - regardless of the age of the components. Before you or IVCA write another book in defense of why they do, though, please know I'll probably not take the time to read it... (a) it won't change my opinion, and (b) I honestly just don't care that much about it.

 

[glenn walker]

Honestly - I didn't take the time to read the book. Other than the first sentence, though, I fail to see where you were able to tie the CA to a beauty pageant? As to whether buyers 'depreciate' site improvements, it is my opinion that they do not. For example: If I'm buying a home that has a 30 year old HVAC system, and IF you were able to guarantee me that system would perform for another 30 years, I could care less how much depreciation I could attribute to the system. That's the reason folks purchase home warranties when they buy a property - regardless of the age of the components. Before you or IVCA write another book in defense of why they do, though, please know I'll probably not take the time to read it... (a) it won't change my opinion, and (b) I honestly just don't care that much about it.

Now brewer-be nice to George he is just trying to enlighten you : ) LMAO

 

[George Hatch]

Honestly - I didn't take the time to read the book. Other than the first sentence, though, I fail to see where you were able to tie the CA to a beauty pageant? As to whether buyers 'depreciate' site improvements, it is my opinion that they do not. For example: If I'm buying a home that has a 30 year old HVAC system, and IF you were able to guarantee me that system would perform for another 30 years, I could care less how much depreciation I could attribute to the system. That's the reason folks purchase home warranties when they buy a property - regardless of the age of the components. Before you or IVCA write another book in defense of why they do, though, please know I'll probably not take the time to read it... (a) it won't change my opinion, and (b) I honestly just don't care that much about it.

I didn't explain why I thought the beauty contest analogy works. I just made the statement and then switched to the main topic of the thread which is the ROI element.

As for why I think "beauty contest" analogy is as reasonable as any, it's in the nature of the contest. The participants look at the various alternatives and pick the deal (this house for this price) which appears to them to be the most beautiful. Same as you do when you buy oranges or a car or anything else.

 

[alebrewer]

I would think buyers put a bit more thought into making the biggest purchase of their lives (for most) than picking a pretty girl, but ok. You're right - I'm wrong. That was easy, huh?

 

[George Hatch]

Tough morning? This is a discussion forum, the purpose of which is to exchange ideas and perspectives. The format enables long form discussion and engagement. If you want short form feelz then that's something that Twitter does really well.

 

[alebrewer]

Not at all. Some folks herein just get too tedious - you know, the old 'how many angels can you fit on the head of a pin' kind of stuff. It just bores me. I guess if being bored at tiresome discussions can be considered 'tough', then yeah, but a tough morning for me is when I'm being hung up by my thumbnails, so all in all, it's been a pretty easy morning. Thanks for the concern, though.

 

[George Hatch]

I completely get your point, and you're right: stating the conclusion is quick and easy. Explaining the reasoning behind the conclusion - like we do in our day job - takes more effort.

I only sometimes write specifically for any one individual. Other times I'm writing for the group. The book you're complaining about is an example of the latter, wherein I'm expressing disagreement with other posters in this thread about the topic of this thread. Heck, sometimes I write in order to work through my own reasoning and opinions. In retrospect I probably should have broken it up into separate posts, so, apologies.

 

[Terrel L. Shields]

i have continually looked for the 'hot button' box

An old builder (RIP) told me every house needed a distinct feature to stand out, perhaps a large bathroom with claw tub, or a huge fireplace with book cases beside them, a sunken living room (not so common now), or a large entry with lots of crown molding. The "hook" - you know. That first few words in a presentation to set the stage, an attention grabber. Same with a house. You walk in and that grabs your attention.

would think buyers put a bit more thought into making the biggest purchase of their lives (for most) than picking a pretty girl,

Guys might not....they just want a place as the late not-so-great Earl Butz put it - " *****, and a warm place to ****"
And women often are the deciding vote in a purchase. And who knows what a woman wants... see above. It's whatever catches their fancy. Two identical houses, but one has just that little extra 'hook' - the big bedroom, the view out the window...who can really predict that?